Trump civil fraud case: Judge fines Trump $354 million, says frauds 'shock the conscience'
The former president was found to have defrauded lenders.
Former President Donald Trump has been fined $354.8 million plus approximately $100 million in interest in a civil fraud lawsuit that could alter the personal fortune and real estate empire that helped propel him to the White House. In the decision, Judge Arthur Engoron excoriated Trump, saying the president's credibility was "severely compromised," that the frauds "shock the conscience" and that Trump and his co-defendants showed a "complete lack of contrition and remorse" that he said "borders on pathological."
Engoron also hit Donald Trump Jr. and Eric Trump with $4 million fines and barred all three from helming New York companies for years. New York Attorney General Letitia James accused Trump and his adult sons of engaging in a decade-long scheme in which they used "numerous acts of fraud and misrepresentation" to inflate Trump's net worth in order get more favorable loan terms. The former president has denied all wrongdoing and has said he will appeal.
Top headlines:
Summary of penalties
Donald Trump and his adult sons were hit with millions in fines in the civil fraud trial and barred for years from being officers in New York companies. The judge said the frauds "shock the conscience."
Donald Trump: $354 million fine + approx. $100 million in interest
+ barred for 3 years from serving as officer of NY company
Donald Trump Jr.: $4 million fine
+ barred for 2 years from serving as officer of NY company
Eric Trump: $4 million fine
+ barred for 2 years from serving as officer of NY company
Former Trump Organization CFO Allen Weisselberg: $1 million fine
+ barred for 3 years from serving as officer of NY company
+ barred for life from financial management role in NY company
Former Trump Organization controller Jeffrey McConney:
+ barred for 3 years from serving as officer of NY company
+ barred for life from financial management role in NY company
Trial scheduled to begin at 10 a.m. ET
The People of the State of New York v. Donald J. Trump, et al, is scheduled to get underway in lower Manhattan at 10 a.m. with opening statements.
If opening statements are completed before the end of the day, the New York attorney general plans to begin her case by calling Trump's former Mazars USA accountant Donald Bender to the stand.
Mazars severed its business relationship with the former president last year after learning of the attorney general's findings during the AG's probe.
Judge has already found that Trump overvalued his assets
Though Trump has denied all wrongdoing alleged by the attorney general, Judge Arthur Engoron has already decided the central allegation against Trump and his co-defendants, ruling in a pretrial hearing last week that the AG had provided "conclusive evidence" that Trump overvalued his assets between $812 million and $2.2 billion.
The judge then canceled the Trump Organization's business certificates in New York, severely restricting Trump's ability to conduct business in the state moving forward -- a move that Trump attorney Alina Habba called "nonsensical" and "outrageously overreaching."
"In defendants' world: rent regulated apartments are worth the same as unregulated apartments; restricted land is worth the same as unrestricted land; restrictions can evaporate into thin air," Engoron wrote, citing multiple arguments made by defense to justify the allegedly inflated valuations of Trump's assets. "That is a fantasy world, not the real world."
Among the issues still to be determined at trial: What additional penalties Trump might face, and what might happen with the multiple causes of action included in the attorney general's suit.
Trump blasts judge ahead of trial
Former President Donald Trump stepped up his attacks on the judge overseeing and deciding his case, writing on Truth Social overnight that Justice Arthur Engoron should resign and be sanctioned for "abuse of power."
Similar to an earlier post, Trump criticized allegations regarding the value of his Mar-a-Lago estate, in addition to an appellate court's ruling that his lawyers unsuccessfully tried to use to limit the timeframe of the case.
Trump says he will attend trial's opening
Former President Trump posted on his Truth Social platform Sunday night that he intends to attend the opening of the trial.
"See you in court -- Monday morning," he wrote in a post.
Earlier Sunday, multiple sources familiar with the decision told ABC News that Trump was expecting to attend.
Trump will have no speaking role in court on Monday, but it is anticipated that he'll return to the courthouse toward the end of the state's case when court records show he will be called as a witness.
Scrutiny over Trump's presidency prompted bank to halt relationship
Deutsche Bank decided to stop doing new business with Donald Trump due to the "increased exposure" and "scrutiny" related to his being elected president, according to testimony from Deutsche Bank managing director Rosemary Vrablic.
"It was an unprecedented situation to have a customer who was going to become president of the United States," Vrablic said.
By the time Trump was elected, the bank had made three profitable loans to Trump, making a projected $6.8 million in revenue from Trump in 2014. Vrablic confirmed that by July 2015, Trump had $31 million in cash deposits with the bank, and his associated entities stored $86 million in cash deposits.
However, the scrutiny of Trump's presidency prompted the bank to decide not to increase its exposure, including declining to offer Trump a loan for his golf course in Turnberry, Scotland.
"He was president of the United States -- going to become president of the United States -- and the bank's position was they did not want to increase its exposure at that time," Vrablic testified.